Silicon Valley start-up companies have reached the top of the landslide inevitable valuation

[Abstract]Square in 2014 to $6 billion valuation completed a round of financing, and the current market value of only $4 billion.


BI Chinese station on January 13th reported

Silicon Valley guys are fun. I’ve seen some of them in the last tech cycle. Everybody knows that some crazy will end. But they believe that such prosperity will last forever.

currently, the technology industry a total of 145 valuation of more than $1 billion Unicorn company, the total valuation of $506 billion. But some of the biggest companies are still losing money. Many people believe that these companies to the bull market sounded the alarm.

such a situation is not uncommon. This alarm bell in 2000, when the.Com bubble peak. But in many cases, we do not hear the alarm, do not see any catalyst event, there is no particular story. The bull market has suddenly become a bear market.

right now, we’re seeing it all before us.


if you have been concerned about the technology industry, then you may have seen a few weeks ago, Square listed news. Square in 2014 to $6 billion valuation completed a round of financing, and has been listed. However, the current market value of Square is only $4 billion.

in Square’s IPO (initial public offering) roadshow, investors believe that the current value of Square is not up to the level of the previous financing. Therefore, the valuation level of $6 billion, Square is difficult to attract the interests of investors. Eventually, the company completed the listing of the market value of $3 billion, the price of $9 per share. At least after the listing of Square performed well, the current stock price of $12.


there is no catalyst event, no alarm. The problem is that the price given by previous investors is too high, and now they have decided to bring down the price.

but you need to know what this means: if the price of a IPO is lower than the bid for venture capital, then the IPO of other companies may be the same.


many people may not know, some fund public fund giant fidelity also holds shares in Private Companies. Fidelity is currently working on how to estimate such assets.

in general, venture capital companies need to invest their own "market price", and they usually rely on third party valuation services. Such valuations are usually based on market sentiment and perspective. It can be imagined that some valuation may be completely wrong.

valuation itself does not make much sense. If you are a limited partner in the venture capital, the ultimate concern is the

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